Australians think ‘it won’t happen to me’
A national survey of over 500 financial advisers conducted at a recent life risk roadshow by Zurich Financial Services Australia has found the reason behind the underinsurance problem in this country is that people believe they will never experience something bad in their lifetime.
As many as 50 per cent of the advisers asked during the roadshow said they thought their clients had not taken out sufficient insurance for this reason.
A further 22 per cent of advisers felt people were underinsured because they did not know about personal insurance, while another 19 per cent believed their clients did not take out this type of insurance because it was deemed too expensive.
And advisers reinforced the underinsurance gap remained a real concern for Australian society, with 73 per cent of those surveyed estimating that families in general needed minimum life cover of $1 million to be safe. The average coverage for Zurich Australia clients currently stands at $400,000.
However, in a finding that may make Australians rethink their approach toward life insurance, 60 per cent of advisers said they had a close friend or family member who had been diagnosed with cancer in the past two years.
In addition, 57 per cent of respondents admitted to having a cardiovascular risk factor in their personal profile.
Marc Fabris, strategic marketing manager, Zurich Australia said: “A significant challenge our industry faces is to appreciate the reality of life risks and the consequences of these risks so that action is taken — both by advisers in raising the issues and clients in heeding their advice.”
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
